ICICI Securities Limited Broker Research reports

Aurobindo Pharma’s Q3FY25 performance was below our expectation due to lower-than-anticipated sales in US while Europe (up 22.7% YoY) and growth markets (up 39.2% YoY) maintained traction. EBITDA margin was 20.4% despite lower gRevlimid sales and INR 600mn cost of Pen-G plant.

VRL Logistics’ (VRL) Q3FY25 EBITDA performance was 26%/23% ahead of our and consensus’ numbers. Realisation (up 10% YoY) led improvement in both EBITDA and EBITDA margin, volume grew 1% YoY/QoQ (9MFY25: 4% YoY).

TCI Express’ (TCIE) Q3FY25 EBITDA of INR 289mn was 22.9% below our estimates. Volume declined 3.2% YoY due to subdued demand. EBITDA margin slipped to 9.8% (lowest since Q2FY21) on account of a volume dip, higher operating costs and unabsorbed fixed cost.

Aadhar Housing Finance (Aadhar), with 21% YoY/5% QoQ AUM growth in Q3FY25, continued to reinforce the view that credit demand in low-income housing is robust and the AHFC space would likely sustain its growth momentum.

State Bank of India (SBI) reported Q3FY25 PAT of INR 168.9bn (up 84% YoY) led by sharp opex reduction (off high base) and contained credit costs, while revenue growth was muted (up 2% YoY).

In Q3FY25, Somany Ceramics (SOMC) reported consol. revenue growth of 5.3% YoY with tile volume growing 4.5% YoY (5-year CAGR of 5.1%) while tile realisation declined 0.9% YoY (flat QoQ).

The Ministry of Defence has inked a contract with Economic Explosive Limited (EEL)- 100% subsidiary of Solar Industries (SOIL) and Munitions India Limited (MIL) for procurement of Area Denial Munition (ADM) Type-1 (DPICM) and High Explosive Pre Fragmented (HEPF) Mk-1 (Enhanced) rockets, respectively, for Pinaka Multiple Launch Rocket System (MLRS) at a total cost of INR 101.4bn.

PVR Inox’s ad revenue grew ~36% QoQ to ~INR 1.48bn (highest quarterly ad-income post Covid) in Q3FY25, which in our view is an encouraging development.

Mishra Dhatu Nigam (MIDHANI) reported an impressive Q3FY25 performance. Lower cost and higher recycling resulted in EBITDA growth of 46% YoY despite 6% YoY decline in revenue.

Lemon Tree Hotels (LEMONTRE) reported Q3FY25 consolidated revenue of INR 3.6bn (up 23% YoY), in line with I-Sec’s estimate as portfolio ARRs (including Mumbai Aurika) grew 7% YoY, while occupancy stood at 74.2%, up 826bps YoY.